MUSCAT: Oman plans to invite bids to build a steam cracker plant worth $3.5 billion with a production capacity of 1 million tonnes a year of petrochemical products, two sources close to the project said yesterday.
The planned cracker would be built in the northern industrial port city of Sohar and produce polypropylene and polyethylene, which are used in making plastics.
The project will include building a 300-kilometre (190-mile) pipeline, a gas extraction plant and headquarters buildings, one industry source, speaking on condition of anonymity, told Reuters.
State-owned Oman Oil Refineries and Petroleum Industries Co (Orpic), which owns oil refineries in Sohar and Muscat, will finance the new steam cracker. A spokesman from Orpic declined to comment on the project.
A second source said bids would be invited next month and the project was scheduled to be completed in 2016. “By then, the Sohar refinery’s expansion will be completed because 50 percent of the feedstock for the steam cracker will come from this refinery,” he said. Oman is expanding the capacity of the Sohar refinery to 180,000 barrels per day from the current level of 116,000 bpd. The Gulf state has another refinery in Muscat producing 106,000 bpd. It also plans to build a 230,000 bpd refinery at Duqm.
Abu Dhabi power plant to price project bond
DUBAI: Abu Dhabi’s Shuweihat 2 (S2) power and water plant plans to price a project bond worth up to $825m tomorrow, arranging banks said.
S2 is 54 percent owned by Abu Dhabi National Energy Co (TAQA). Early price talk for the bond, which matures in 2036 was set in the 6.25 percent area.
The deal is open to US institutional investors due to its 144a-compliant structure, and will be issued as a bond by Ruwais Power Co. Last month, the company held a series of investor meetings ahead of a potential issue, which coincided with significant volatility in global fixed income markets.Agencies
